Cotton prices in Pakistan continued to fall due to the cautious buying of cotton by textile spinning mills throughout the last week due to the supply-side phenomenon, depressing the cotton prices in the local market. The cotton price witnessed a decline of Rs.500 to Rs.1000 per maund, while the business volume was also very low.
On the other hand, the price of cotton in the International cotton markets has registered a similar fate, as the rate of Future Trading of cotton has fallen to a low of 79 American cents per pound. It is likely to fall further, sending cautious signals to textile spinners on the buying counters.
According to USDA’s weekly export and sales report, sales for the year 2022-23 were 84,500, including a decrease of 60,300 (-42%) bales. Pakistan topped the list by purchasing 27,600 bales (-50%). Egypt bought 22,000 bales and came second. China bought 10 thousand 100 bales and came third.
Pakistan Cotton Brokers Association Chairman Muhammad Kashif Islam and Vice Chairman Aamir Naseem called Chairman APTMA Asif Inam to discuss problems involved in the cotton trade. Chairman APTMA has assured his full support for the development of the cotton trade in Pakistan through a mechanism to systemize it.
Meanwhile, International Cotton Association (ICA) organized workshops in Karachi and Lahore in collaboration with Karachi Cotton Association (KCA) last week to create awareness among the importers regarding cotton import.
It may be noted that the government has allowed the duty-free import of Cotton and the reduction of customs duties on the import of dyes and chemicals to make the export-oriented industry more competitive in the international market.
